Australian Marketing Institute confident of surplus, committed to recruiting new members

After reporting a deficit for the financial year and being warned by auditors that failure to meet “critical” business targets will place its future in doubt, The Australian Marketing Institute has vowed to increase efforts to draw new members.

Lee Tonitto

Tonitto: Previous financial year investments “are increasing operating efficiency”

Last week the AMI’s annual report revealed an audited deficit of almost $170,000 for the 2015-2016 financial year, a net asset “deficiency” of $718,575 and a drop in revenue from members of $157,000.

The auditors painted a dire picture for the future of the AMI if it did not meet its business targets, which included growing its membership income by 20% and slashing costs by 12%.

In its report auditor Mazars said directors were confident of the budget and surplus projections for the next financial year.

“However, these forecasts contain critical assumptions and performance objectives which need to be achieved in order for the company to continue as a going concern,” the auditors said.

The AMI has responded to the warnings in a statement from CEO, Lee Tonitto, who admitted the organisation was under pressure.

“Due to continued pressure on membership subscriptions, as well as increased staff and infrastructure costs, the Australian Marketing Institute has recorded an audited deficit for the past financial year,” Tonitto said.australian-marketing-institute

“Expenditure during the FY 2015-2016 was directed towards investment in staff and implementing new internal infrastructure for the business to improve servicing members and meet compliance requirements. These investments are increasing operating efficiency.”

Tonitto said she was confident the new business plan would deliver, and that first quarter results were looking promising.

“In 2017, the AMI will take a more focused and targeted approach to acquiring, retaining and servicing members,” she said.

“The FY 2016-2017 1st quarter is showing improved performance, with a 20% increase in membership subscriptions compared with the previous year. Our FY 2016-2017 plan is to return to profit and increase cash reserves.”

While the AMI struggled with membership, the organisation’s improved its revenue stream from events and professional services.

“In FY 2015-2016 we achieved strong profit growth in the functions division and the professional development division, an increase of 16% compared with FY 2014-2015. This was driven by improved event management practices, partnership revenue, new online training courses and the accreditation program.”

The annual report revealed steady revenue of $1.93m, but expenses soared $315,000 to almost $2.1m, largely the result of a sharp increase in at item labelled “employee benefit expense” which climbed from $435,177 to $632,540.


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